Research On The Financial Performance Of Shennan Jinke Under Diversification Strategy

Since the 1960s,diversification strategy has been widely used by enterprises all over the world.As one of the four basic business strategies,diversification strategy is also one of the growth strategies that most enterprises want to achieve rapid expansion.In recent years,with the rapid development of the Internet and big data and the rapid development of the market economy,the communication industry has become more and more competitive,the adoption of diversification strategy has become an important way for most companies to break through the development,however,the implementation of diversification strategy has certain risks,but also a certain degree of applicability and applicability for companies,some companies because the implementation of diversification brought economic growth,some companies because of the implementation of diversification and failure.Therefore,from the academic point of view,the implementation of diversification strategy on the impact of the companys operations and the impact of financial performance is not a unified conclusion,it needs further research and reflection.In this paper,we choose the case of Shennan Jinke,which has changed from specialization to diversification in recent years.First of all,the diversification strategy of the relevant literature at home and abroad to sort out and discuss,followed by the diversification strategy of the relevant concepts,relevant theories,specific analysis for the following specific issues to provide a sufficient theoretical basis.After that,it analyzes the motivation of Shennan Jinke to implement the diversification strategy,and analyzes the motivation of the company to disperse the risk of the main business from the problems existing in the main business of communications and the causes of the risk of the main business of communications,from the general advantages accumulated by the company,the business factoring industry,the finance leasing industry,the big data information service industry,the motivation of the company to find new business growth areas is analyzed.Then,it evaluates the effect of the diversification strategy with the financial performance,including the analysis of the operating income of the diversification industry,the horizontal analysis and vertical analysis of the financial indicators before and after the diversification strategy is implemented,this paper makes a comparative analysis of the results of the assumption that the company continues to carry out a single operation and the actual performance of the companys diversification strategy.Finally,according to the analysis above,we find that there are some shortcomings in the diversification strategy of Shenanjinke,such as slow growth of profitability,weak sense of coordinated development of diversified industries,complicated management structure and increased financial risk The lack of talent reserve in new industries makes the companys growth ability unstable.This paper puts forward three suggestions: to strengthen the self-profit level,to strengthen the consciousness of industry cooperation,to establish a special diversified strategic management organization,to manage strategic risk,to strengthen the construction of diversified talent team,and to stabilize the growth ability of the company.It provides a series of references for the company to find out the problems,solve the problems and adjust the strategy,which can make the company avoid the risks effectively and make the advantage of the companys diversification strategy play to the maximum.